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For example, the options writer rolls down when he buys back the original option sold and then writes another option ... Leverage using Calls, Not Margin Calls.
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As the seller of the option, you get to keep the premium, whether or not the buyer exercised ... Whether the stock price goes up or down, you still come out ahead.
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Many a times, stock price gap up or down following the quarterly earnings report but often, the direction of the ... Leverage using Calls, Not Margin Calls.
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If the underlying stock price does not move above the strike price before the option ... for the call option no matter how low the stock price is trading on expiration date. ... Many a times, stock price gap up or down following the quarterly earnings ...
Conversely, a bear spread is a spread where favorable outcome is attained when the price of the underlying security goes down. Credit & Debit Spreads. Option ...
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... common strategy is to double down and reduce the average purchase price. ... However, there is no additional downside risk to this repair strategy and losses ...
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